The latest proposed bill may screw the bad & harsh enforcement action of the American securities regulatory body.
In the present time, crypto businesses are providing services in the US on behalf of traditional financial laws. The United States Securities and Exchange Commission (SEC) regulates crypto firms on behalf of the traditional rules, which were developed around 100 years ago before the internet era. Over the past couple of years, the SEC body faced huge criticism for its bad crypto regulatory approach.
On 2 June 2023, The United States House Financial Services Committee and House Agriculture Committee released a draft to bring a new rule to allow the crypto tokens to qualify for the commodity nature.
There are rules & laws under the proposed bill that will determine the level of decentralised nature & further rules will identify whether that crypto asset is passing all the commodities rules or not.
This new bill aims to bring clarity on the crypto regulatory rules and also provide clarity on which certain regulatory bodies will be allowed to rule against particular crypto token-linked businesses but here it doesn’t mean that the SEC body will have no authority to put its objection against the qualified commodity assets.
According to several crypto experts in this innovative sector, there are huge chance that the majority of the crypto assets will fail to qualify as already the US financial regulatory bodies do not agree with the Ethereum (ETH) coin.
Under the purview of the CFTC & the SEC body, Bitcoin is a commodity but several times they passed overlapped statements. The CFTC claims Ethereum is a commodity but the SEC agency claims Ethereum is a security crypto token.
Just two months ago, Coinbase crypto exchange legal officer Paul Grewal said that it doesn’t mean that if any Crypto asset is a commodity then that asset can’t be security and tried to drag the attention toward the existing traditional assets, in which certain numbers of assets are security & community simultaneously.